A Positive Edge

February 7, 2002
Daniel Beighley

The major indexes shifted
direction three times this morning before gaining footage for a bullish trend,
then sold off around 2:00 p.m. ET, where they slid into negative closes. Blue chips held
a positive edge for most of the day, with gold and silver, and airline stocks
putting in a good show. Semiconductors led the technology sectors to the
downside.Â Â

The day’s main economic news
came before the opening bell when the Labor Department reported that the number
of Americans filing new claims for state unemployment insurance fell 15,000 to
376,000. Analysts polled by Thompson Global Markets were looking for a number
of 386,000 claims.

Overall NYSE volume was
1,421,818,000. NYSE
advancing issues were
1,396, with up volume at
531,646,000; declining issues were
1,936, with down volume at
772,406,000. Overall Nasdaq volume was
638,356,000. Nasdaq advancing issues were
1,386, with up
volume at
520,336,000; declining issues were
2,127
with down volume at
1,435,673,000. The
VIX was down 0.52 to 27.68. The TRIN
was down 0.30 to 0.68.

Average volume on the day has
the Dow and the S&P 500 closing at the bottom of their daily ranges, with the
Nasdaq taking another step into bear territory. The Semiconductor Index
(
$SOX.X |
Quote |
Chart |
News |
PowerRating)
made a clear move south of its 50-day MA, and the Broker/Dealer Index
(
$XBD.X |
Quote |
Chart |
News |
PowerRating)
closed out in a doji formation after touch and retreating from its 200-day MA.

Retailer Ann Taylor
(
ANN |
Quote |
Chart |
News |
PowerRating),
up 7.43% to 40.91, reported a 14.3% increase in comps, due to a better
than expected sales in January. The company raised its fourth quarter outlook to
33 to 34 cents a share, bettering analysts’ consensus of 26 cents a share.Â Â

Discount retailer Wal-Mart

(
WMT |
Quote |
Chart |
News |
PowerRating), down 0.88% to 58.36, announced that same-store sales rose 8.3% in
January, and has an expected growth rate of 4% to 6%. Total sales for January
increased 14% to $15.4 billion.

Department store retailer
Federated Department Stores
(
FD |
Quote |
Chart |
News |
PowerRating), down 2.45% to 38.28, said that same-store
sales had decreased 8.8% for January. As the parent companyÂ of Macy’s and
Bloomingdale’s, the company said total sales were off 25%.

Insurance company American
International Group
(
AIG |
Quote |
Chart |
News |
PowerRating), up 0.49% to 71.10, posted earnings of 70
cents a share compared to 68 cents a share a year ago. The company’s net income
rose 3.5% in the fourth quarter, hurting from exposure to Enron and the Sept. 11 attacks.

Clothing retailer Gap Stores
(
GPS |
Quote |
Chart |
News |
PowerRating), up 1.55% to 13.10, announced that same-store sales fell 16%,
surpassing analysts’ expectations of 10%-12%. The company expects to
meet earnings expectations for the fourth quarter with a loss of 3 to 5 cents a
share.

Department store retailer
Kohls Corp.
(
KSS |
Quote |
Chart |
News |
PowerRating), up 0.01% to 67.09, reported a 12% rise in same-store sales, with total sales up 28%. The company plans to open around 70
new stores in 2002.

Communications Service company
WorldCom
(
WCOM |
Quote |
Chart |
News |
PowerRating), up 12.71% to 7.54, missed Wall Street earnings
expectations with profits off 64 percent, and lowered its expectations for 2002.
The company said exposure to the bankruptcies of Global Crossing and Enron
accounted for $11.5 million less in receivables.

A Positive Edge

BUY THE FEAR, SELL THE GREED

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